The recent rise in China's equity market is mainly driven by visions of a strong AI trend, which is expected to continue in the short term given global investors' light positioning in the Chinese market, Morgan Stanley released a research report saying.

The broker screened 15 Chinese direct beneficiaries, including TENCENT (00700.HK), Baidu (BIDU.US), MEITU (01357.HK), Alibaba Group Holding (BABA.US), XIAOMI-W (01810.HK) and LENOVO GROUP (00992.HK), etc..

China has made significant progress in AI after DeepSeek released its cost-efficient foundation model with performance comparable to leading companies like Google, Open AI and Meta (META.US), Morgan Stanley added.

The MSCI China Index and the HSI have continued to rise since 13 January (the first day post the release of DeepSeek-R1), with the HSI/ the HSTECH soaring 12%/ 22% each from 13 January to 7 February.
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AAStocks Financial News
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SG Top Picks
Stock & Type	Code	Strike(Call Level)	Last	Effective Gearing
TENCT (C)	13940	630.5 (-)	0.179	7.6 X
TENCT (C)	28713	598.93 (-)	0.133	9.8 X
TENCT (C)	13832	580.5 (-)	0.265	7.1 X
TENCT (C)	29059	538 (-)	0.335	7.3 X
TENCT (P)	13938	363.8 (-)	0.060	6.8 X
TENCT (P)	28010	349.8 (-)	0.028	8.5 X
TENCT (Bull)	56270	491 (494)	0.060	17.2 X
TENCT (Bull)	56236	480 (483)	0.078	13.3 X
TENCT (Bear)	56237	556 (553)	0.066	15.7 X
TENCT (Bear)	55892	541 (538)	0.044	23.5 X
LENOV (C)	25544	14.8 (-)	0.178	3.8 X
LENOV (P)	25079	9.62 (-)	0.027	5.4 X
XIAOMI (C)	13717	57.55 (-)	0.540	4.5 X
XIAOMI (P)	13512	30.23 (-)	0.039	5.8 X
XIAOMI (Bull)	56285	46.1 (46.5)	0.060	8.6 X
XIAOMI (Bull)	56246	44.1 (44.5)	0.083	6.2 X
XIAOMI (Bear)	56248	57.9 (57.5)	0.054	9.6 X
XIAOMI (Bear)	54612	55 (54.5)	0.031	16.7 X
META (C)	10440	700 (-)	0.900	6.5 X
META (P)	10563	600 (-)	0.630	4.4 X
META (P)	10436	480 (-)	0.026	11.7 X